Updated at 11:00am CST.
After five days of rallying, the pound is trading lower this morning as home prices dipped 0.2% in August and manufacturing output in July shrunk more than analysts had expected. Investors have been seeing signs of a post-Brexit vote rebound in the UK’s economy on a string of better-than-expected manufacturing, service sector, and consumer confidence reports, but today’s data is giving them pause at the pound’s expense.
The euro is trading lower despite there being no surprises in Germany’s industrial production for July or Italy’s trade balance data. Investors are waiting for tomorrow morning’s European Central Bank decisions, where the ECB is expected to keep interest and deposit rates the same. A surprise interest rate cut at tomorrow’s meeting, however, could cause the euro to fall.
The Canadian dollar is down after an Ivey School of Business report showed August business activity in Canada growing less than analysts had expected. The Australian dollar is trading lower against a rising US dollar as investors wait for tonight’s home loan data for July.
EURUSD: The euro is trading lower as investors await tomorrow’s ECB meeting.
GBPUSD: The pound is retreating on lower home prices and a larger-than-expected drop in manufacturing output in July.
AUDUSD: The Aussie dollar is weaker against the strengthening greenback as investors wait for July’s home loan data out tonight.
USDCAD: The Canadian dollar is down on slower-than-expected business activity growth.